The Iranian rial traded at 703,000 to the dollar, signaling Iranian fears that Trump could punish Iran with harsh sanctions over its yearlong war on Israel.

Iran’s already ailing national currency cratered after Donald Trump’s election victory, heralding tough times for Tehran’s economy as the former president prepares for another term in the White House.

The Iranian rial traded at 703,000 to 1 American dollar early Wednesday, an all-time low, before settling at 696,150 to a single dollar, according to the Associated Press. The steep drop signals fears in Iran that Trump will enter office prepared to level harsh new economic sanctions on the country—and enforce active ones—as punishment for its yearlong war on Israel.

As the Iranian rial tanked, the American stock market surged, with the Dow Jones Industrial Average jumping more than 1,300 points to 45,557 as of mid-day trading. The Nasdaq grew by more than 430 points, hitting 18,875 in the afternoon.

During his first stint as president, Trump decimated Tehran’s economy with sanctions, ushering in a “maximum pressure” campaign that the Biden-Harris administration subsequently dismantled in a bid to entice Iran into a revamped version of the 2015 nuclear accord. Under the administration, Tehran was given access to upwards of $100 billion in cash resources, helping it arm a slew of regional terror proxies that have wreaked havoc on Israel and American military positions in the Middle East.

With Trump’s second term looming over Tehran, the country will have to make tough choices about its war on Israel. Iran has already promised a crushing response to Israel’s first direct attack last month but could decide to hold fire given Trump’s track record of support for the Jewish state. In 2020, Trump greenlit the assassination of Quds Force commander Qassem Soleimani.

Iran said Wednesday that it is not concerned by Trump’s election and saw both candidates as enemies.

“The election of the U.S. president has nothing to do with us. The general policies of the U.S. and Iran are constant,” Iran’s foreign ministry said in a statement. “It doesn’t matter who becomes the president in the United States because all the necessary planning has been made in advance.”

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